Urban housing reform has been regarded as one of the most difficult components of the Chinese economic reforms because of its great significance on the livelihood of all urban residents. Its development and advancement has been slow and progressive over the last two decades until a rather fundamental policy shift in 1998 - the inauguration of the housing monetarization policy. This new initiative seeks to change the housing distribution mechanism from in-kind housing allocation to cash subsidy provision. Different models have since emerged in local governments and culminated finally into two major approaches: namely, the incremental and the holistic approach. Most cities adopt the incremental approach where the status quo of housing distribution in the old system is largely preserved while introducing new rules to new entrants into the system. The degree of success varies tremendously between regions and cities in this approach, and on the whole, the implementation of housing monetarization reform is rather fragmented and unsuccessful. This thesis concerns a successful case that has taken place in an economically backward city - Guiyang, in Guizhou. The thesis aims at analyzing the dynamics of such policy change and its impacts on housing equality and distributive justice. The Guiyang housing model carries important implications on understanding the role of housing reform in economic transition and social development of contemporary China.